Monterey City Council Finance & Engineering Committee Meeting - October 20, 2025

The Finance and Engineering Committee convened to review unaudited financial reports, project expenditures, and infrastructure status updates for the 2024-2025 and current fiscal years. The committee discussed the allocation of Measure S funds, the city's street pavement conditions, and the strategy for the upcoming 2026 ballot renewal. Key discussions centered on budgetary prudence regarding intern wages, specific line-item expenditures, and the technical details of road rehabilitation projects.

Consent Calendar

• Approval of Minutes: The committee approved the correction of minutes from July 21, 2025, to reflect Rick Hoyer's absence during the roll call vote for that date. The motion to approve the minutes as corrected carried with six member presence/yes votes (Rick Aldinger, Justin Chang, Carol Trabalian, Rick Hoyer abstained on vote 1, but was present for the correction; all voted Yes on the corrected motion).

Public Comments & Testimony

• No public comments were received during the meeting.

Discussion Items

• Budgetary Controls & Intern Wages:

  • Rick Hoyer expressed concern regarding the payment of city interns at $21/hour despite the California minimum wage being $16.50, questioning the necessity of paying above minimum wage during a fiscal deficit. He emphasized the need to find savings, stating, "We're in a mode where we have a structural deficit, we have to save money."
  • Staff explained that intern rates are set in the salary schedule, not the Position Control List (PCL), and represent a competitive wage rate in the current market. Staff noted that while unpaid internships are rare, the role of interns is to offset hours that would otherwise be performed by full-time staff, representing a return on investment.
  • Carol Trabalian voiced skepticism about the value proposition of paying interns when the city is "broke," stating, "We can't afford to pay Cadillac when a Buick would work." She supported an attempt to lower costs where possible to offset other expenditures.

• Expenditure Discrepancies:

  • Rick Hoyer questioned an $8.62 expenditure for a laptop adapter under the ADA account, expressing concern about using public tax funds for such a small item and suggesting it might be ineligible.
  • Staff member Andrew later clarified that the adapter was a piece of permanent equipment used by a field surveyor for ADA elevation work, not an intern personal expense. He stated that because the equipment remains with the city, the expenditure is eligible for review.

• Storm Drain Permitting:

  • Rick Hoyer inquired about the status of the VS Baranza storm drain project after noticing small expenditures. An engineer explained that the project had been stalled for two years in permitting and land acquisition, but a design path was recently approved by the State Water Resources Control Board.

• Street Rehabilitation & Technical Issues:

  • Engineering staff described upcoming full-depth reclamation (FDR) projects on North Fremont at the Seaside city limit, noting the high traffic index required for the design.
  • A discrepancy was raised regarding road limits on Aguajito and Monholland; city data shows a small segment, but county GIS data suggests a significantly longer segment that the city might be responsible for, requiring a surveyor to determine the exact boundary.
  • Staff reported that utility trench restoration for previous gas main failures on Munris and Van Buren remains incomplete, highlighting the challenges of coordinating with utility providers.

• Measure S Renewal Strategy:

  • Rick Hoyer questioned the understanding that a 50% + 1 vote is sufficient for renewal, while the committee discussed if any change in language, including the duration of the tax, would necessitate a two-thirds vote. Staff stated their preliminary consultation with the City Attorney supports the 50% + 1 threshold only if the language is identical.

Key Outcomes

• Expenditure Reports Approved:
  • Unaunted expenditures for FY 24-25 (July 1, 2024 – June 30, 2025) were accepted unanimously. Total spend: ~$10.7M (Storm Drains: ~$634k, Sidewalks: ~$440k, Pavements: ~$6.2M, ADA: ~$3.1M).
  • Unaunted expenditures for Q1 FY 25-26 (July 1, 2025 – Sept 30, 2025) were accepted unanimously. Total spend: ~$499k (Storm Drains: ~$110k, Sidewalks: ~$109k, Pavements: ~$155k, ADA: ~$280k).
• Periodic Reports Accepted:
  • Unaunted periodic reports for the full FY 24-25 (Revenue: ~$108M, Expenditures: ~$87M, Balance: ~$20M) were accepted.
  • Unaunted periodic reports for Q1 FY 25-26 (Revenue: ~$1.07M, Expenditures: ~$656k, Fund Balance Increase: ~$425k) were accepted.
• Street Rehabilitation Report Accepted: The committee accepted the report on street rehabilitation, noting a current Pavement Condition Index (PCI) of 80 (91st percentile) and upcoming projects on North Fremont, Wave Street, and Cass Street.
• Sales Tax Update Received: The Q1 2025 sales tax report was received. While the city saw a 1.7% decrease, Measure S showed a 0.2% increase, and Measure G a 0.4% increase. The graph in the report, originally labeled Q4 2024, was noted for confusion but accepted as presented.
• 2026 Meeting Dates Established: The dates for the 2026 calendar were accepted unanimously:
  • January 26, 2026
  • April 20, 2026
  • July 20, 2026
  • October 19, 2026
• Motion Carry Counts:
  • Minutes Approval (Corrected): 4 Yes (Rick Hoyer abstained on original vote, but motion carries on correction).
  • FY 24-25 Expenditures: 4 Yes (Rick Hoyer Abstain on original vote? No, roll call shows: Rick Aldinger Yes, Justin Chang Yes, Carol Trabalian Yes, Rick Hoyer Yes. Wait, roll call: "Rick Aldinger. Yes. Justin Chang? Yes. Carol Trabalian. Yes. Rick Hoyer. Yes." - All Yes). Correction: The roll call transcript for the motion shows all four voting Yes.
  • Q1 2025 Expenditures: 4 Yes.
  • Periodic Reports (FY 24-25 & Q1 2025): 4 Yes.
  • Street Rehab Report: 4 Yes.
  • Sales Tax Report: 4 Yes.
  • 2026 Dates: 4 Yes.
• Next Steps: Staff will verify the 50% vs 2/3 vote requirement for the Measure S ballot language with the City Attorney. The city will proceed with planning for the 2026 ballot renewal without language changes to ensure majority vote eligibility. A surveyor will be engaged to resolve the Aguajito/Monholland boundary limit dispute. An intern wage rate review may be initiated to explore cost-saving opportunities. The $8.62 adapter charge will be retained as a legitimate equipment purchase pending final clarification.